Shares of GEM Enviro Management made an impressive start on its stock market debut on June 26, listing at Rs 142.50, a 90 percent premium over the issue price of Rs 75 on the BSE SME platform.
The listing gains matched grey market estimates where shares were trading at a 96 percent premium. The grey market is an unofficial ecosystem where shares start trading before the offer opens for subscription and continue until the listing day.
GEM Enviro’s Rs 44.93-crore public offer saw robust investor interest, being subscribed a massive 265 times. Non-institutional investors were the most active, buying 463 times their allotted quota. Retail investors bought 240 times their reserved portion. Qualified Institutional Buyers (QIBs) picked 160 times their portion.
Incorporated in 2013, GEM Enviro is a waste management company specializing in recycling all types of packaging waste, including plastic. The company’s services include plastic waste fulfillment, collection and recycling of industrial plastic waste, and sales and marketing of recycled products.
The net proceeds from the IPO will be used to meet working capital requirements and for general corporate purposes.
